As a Seller, you are obligated by law, in Arizona, to disclose all material facts about your property to the Buyer. A Material Fact is anything that might affect a Buyer's decision to purchase, or the terms and/or price that a Buyer may offer. In fact, you are obligated as a Seller to disclose all material facts, whether or not you've been asked. If a Buyer asks about an aspect of the property, you are required to disclose that information, regardless if you think it is material or not. Your legal duties also extend so that you must disclose anything necessary to prevent a previous statement from being misleading or misrepresented, or if the state of the property has changed. If you do not make the legally required disclosures, not only may you be subject to civil liability, it can also be considered fraud.

• Sellers are required to disclose material fact, even if not asked specifically

• Material fact is anything that might affect a Buyer's decision to purchase, including price and terms

• Failure to disclose can be considered fraud

• Complete a Seller Property Disclosure Statement to the best of your ability

• Sellers do not have to disclose deaths and felonies, HIV/AIDS occupancy, or sex offenders in the vicinity

Given the difficulties of remembering the history of a property, and the need to record them all for a Buyer, the Association of Realtors has created a form to help Sellers disclose material fact. Agents call this form the "spuds," which is the Seller Property Disclosure Statement (SPDS). There are six main sections of this document.

This section includes general information about ownership of the property, occupancy, and location.

Includes information about the physical aspects of the property, including termites and other pests.

Identify which utilities are available and with which provider.

Includes settlement, drainage, noise, mold, and other nuisances that may affect the property.

This section is a result of claims involving misrepresentation of sewer connections.

These blank lines are included for you to disclose any other pertinent information, that may affect value, the property, its use, and to make any other explanations.

If the property has been the site of a natural death, suicide, homicide, or other felony

If the property has been owned or occupied by anyone exposed to HIV, or having AIDS, or any other disease not known to be transmitted through common occupancy of a property

If the property is located in the vicinity of a sex offender.

If asked these questions by a Buyer, you may either answer truthfully, or say that you are not required to disclose those facts. You may not lie and say "no" if the answer is truthfully "yes!"